Multiple Choice
Suppose the banking system has $100,000 in outstanding deposits and actual reserves of $35,000. If the required reserve ratio is 25 percent, the maximum amount the banking system can now add to the money supply is:
A) $10,000.
B) $25,000.
C) $40,000.
D) $50,000.
Correct Answer:
Verified
Correct Answer:
Verified
Q105: Suppose the required reserve ratio is 0.15.
Q106: Banks hold people's cash for free, and
Q107: Which of the following are examples of
Q108: Explain the difference between the way real
Q109: The measure of money most closely correlated
Q111: Credit cards:<br>A)reduce the value of holding money.<br>B)create
Q112: In order to function as a medium
Q113: If you expect interest rates to rise,
Q114: A reserve ratio of 0.10 means that
Q115: John Deere deposits $1,000 into Lawnmowers Community